For context, this metric monitors the daily net flows of XRP held by whale wallets across 15 major crypto exchanges (all of which Binance leads in trading volume). Positive readings from the metric indicate that XRP is moving into the exchanges; on the other hand, negative netflows signal an efflux of XRP from these exchanges.
According to the analyst, there has been a significant increase in negative netflows from the Binance platform. This is also reflected in the chart shared below, where, as of February 27th, about 44 million XRP tokens flowed out of Binance’s whale wallet addresses.
Interestingly, this event was not a one-off in the month of February, as roughly 30 million XRP had left these same wallets on the 6th of the month.
What This Means For XRP PriceAlso, when two withdrawals of this magnitude happen within the same month, it is a clear suggestion that these large market players might actually be accumulating XRP in equally large amounts. It could also be a sign that, rather than accumulation, these large holders are locking up their tokens for long-term storage.
Based on historical precedent, events like this are often bound to have positive effects on the price of an asset. In the event that netflows are significantly large, the analyst points out that there is a corresponding reduction in available XRP supply.
At the time of writing, XRP is valued at approximately $1.37, reflecting a 2.9% decline in the past day.
